The critical role of a resilient and flexible supply chain in ensuring on-time delivery

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The critical role of a resilient and flexible supply chain in ensuring on-time delivery


By Marcelo Carrera, Head of Procurement AGC Pharma Chemicals

The pharmaceutical industry is a dynamic and rapidly evolving sector that requires an efficient supply chain to ensure the timely and reliable delivery of products. Within this industry, Contract Development and Manufacturing Organizations (CDMOs) play a crucial role in the development and production of small molecules, serving as essential partners to pharmaceutical companies. However, the challenges faced by CDMOs in managing the supply chain for small molecules are often underestimated.

In recent years, the pharmaceutical industry has witnessed a significant shift towards building a more resilient and flexible supply chain that can adapt to the changing dynamics of the world. This evolution has been largely driven by the uptake of advanced data and analytical technologies, leveraging cloud-based solutions. These technologies are proving to be pivotal in delivering the solutions that the industry needs to prepare for the future.

Supply Chain Strategy and Growth

In the area of Contract Development and Manufacturing Organizations (CDMOs), supply chain strategy is intrinsically tied to growth strategy. The ultimate goal is to be a reliable and transparent supply chain partner for the pharmaceutical industry, thereby facilitating innovation and improving patient outcomes. CDMOs like AGC Pharma Chemicals define a robust supply chain, to be able to mitigate risks in order to deliver APIs and intermediates on time that meet quality standards.

The Importance of High-Performance Supply Chain Partners

The CDMO leadership depends on supply chain partners. Customers, including pharmaceutical and biotechnology companies, depend on APIs being delivered on time with the required quality. This dependence is particularly evident in a world that, despite geopolitical conflicts, relies on the continuous flow of pharmaceutical products to meet healthcare needs. Therefore, there is a growing emphasis on engaging manufacturing partners with highly integrated, sustainable, and transparent supply chain operations.

Leveraging Advanced Data and Analytics

One key aspect of this shift is the utilization of advanced data and analytics. Companies are now able to access real-time information about the status of their suppliers and supplies, as well as monitor current regional geopolitical situations. This real-time data is invaluable in enabling operational managers to anticipate, plan, and react appropriately to disruptions and unforeseen events. This proactive approach is essential in a world where supply chain disruptions have become increasingly common due to geopolitical tensions and other factors.

Hence, at AGC Pharma Chemicals, we maintain a reliable network of contacts, and thanks to our affiliation with the AGC Group, we have procurement teams in key regions such as India, China, Japan, and Europe.

Moreover, we actively participate in international industry events, and additionally, we conduct visits to manufacturers worldwide to ensure the reliability of their operations concerning quality standards and business risk. This involves an assessment of their production capacity and processes to ensure they align with the requirements of AGC Pharma Chemicals and our clients. We also evaluate the provider’s business strategy and model to verify their compatibility with our core business, as well as with the principles and values of AGC Pharma Chemicals, and our compliance and sustainability policies.

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